The Labor Impact of Generative AI on Firm Values
(with Andrea Eisfeldt, Gregor Schubert, and Bledi Taska)
WSJ | Bloomberg |
VoxEU |
Barron's (Frontpage Coverage) | Financial Times | Marginal REVOLUTION
*Best Paper Award at the TCU Finance Conference
How do recent advances in Generative AI affect firm value? We construct the first measure of firms' workforce exposure to Generative AI, and show that an Artificial-Minus-Human (AMH) strategy earned 5% returns in the two weeks following the ChatGPT release. This effect is more pronounced for firms with greater data assets and is distinct from firms' product exposure. We highlight that high-exposure workforce can be either substituted or complemented by technology depending on whether their core or supplemental tasks are exposed. Examining firms' labor demand and profitability post-ChatGPT supports the labor-technology substitution channel.
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Assistant Professor of Finance and Business Economics
Email: miao.zhang@marshall.usc.edu
Curriculum Vitae | Google Scholar Page
Research Interests: Labor, Technology, and Finance
Upcoming Presentations:
University of Michigan, Rochester University, Peking University, Center for Economic Studies, 2024 Santiago Finance Workshop, 2025 AFA (x2)